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flag Melbourne's data centre boom, fueled by AI demand, is straining water and power systems, prompting calls for sustainable planning.

flag Melbourne is fast becoming a top hub for hyperscale data centres, surpassing Sydney in planned projects due to available land, quicker approvals, and reliable power. flag This growth, driven by AI and cloud demand, is straining water and electricity systems, with data centres projected to use up to 19% of the city’s energy by 2050 and exceeding most large non-residential water users. flag Melbourne Water requires upfront payments for infrastructure upgrades, while the energy market operator warns of grid pressure, expecting data centres to consume 8% of electricity by 2030. flag Experts stress the need for better coordination, renewable integration, and community engagement to balance economic benefits with sustainability and data sovereignty.

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